05-29-08 Special Meeting
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SOUTH TAHOE PUBLIC UTILITY DISTRICT
"Basic Services for a Complex World"
Richard Solbrifl' General Manaw.er
Mary Lou Mosbacher, President BOARD MEMBERS
Paul Sciuto, Assistant Mana~er
Dale Rise, Vice President
James R. Jones, Director Eric W. Schafer, Director
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Ernie Claudio, Director
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SPECIAL MEETING OF THE BOARD OF DIRECTORS
SOUTH TAHOE PUBLIC UTILITY DISTRICT
MAY 29, 2008
MINUTES
The Board of Directors of the South Tahoe Public Utility District met in a Special Session,
May 29, 2008, 2:00 P.M., District Office, 1275 Meadow Crest Drive, South Lake Tahoe,
California.
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BOARD OF DIRECTORS:
President Mosbacher, Directors Rise, Claudio, Schafer.
Director Jones was absent.
ATTENDEES
STAFF:
Solbrig, Sharp, Henderson, Sciuto, Coyner, W. Stanley,
Cocking, Whalen, Rasmussen, M. Alsbury.
(Attorney Herrema participated via teleconference
for Closed Session Item a.)
GUESTS:
John Runnels, John Cefalu, Adam Jensen/Tahoe Daily
Tribune
John Runnels led the pledge to the flag.
PLEDGE OF ALLEGIANCE
MAJORITY PROTEST HEARING
President Mosbacher opened the Public Hearing at
2:00 p.m.
OPEN HEARING
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Pursuant to the requirements of Proposition 21 8,
Debbie Henderson reported that on April 14, all
customers were mailed notification of the proposed
rate changes for the sewer and water enterprise
STAFF REPORTS
SPECIAL BOARD MEETING MINUTES - MAY 29, 2008
PAGE - 2
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funds, both of which will include an overall rate
change of 4%. Customers were given 45 days to
submit written protests.
Lisa Coyner reported out of 17,000 + customers, a
total of 37 written protests were received by the
deadline. Of those, 25 were determined to be valid
protests (i.e., they included the required information
such as parcel number, name, etc.). She stated the
valid protests constituted less than 1 % of the 2/3
required to be considered a valid protest.
Director Mosbacher reported she received one verbal
protest.
Wanda Stanley spoke in favor of the rate increase
and emphasized the need to maintain infrastructure.
John Runnels stated he was in favor of the rate
increase.
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John Cefalu received clarification regarding the
portion of the budget devoted to salaries. He spoke
in opposition of the rate increase, citing difficult
economic conditions. He encouraged the Board to
absorb the rate increase and gave his ideas how this
could be accomplished. He also complimented District
employees for their efficient assistance they gave
him on a recent project he completed.
Board members discussed some of the escalating costs
the District is facing. They noted capital projects were
prioritized carefully, and stressed the need to continue
with waterline upgrades for fire protection. The District
has had success with grants, which went a long way to
help keep the requested rate increase low.
The Majority Protest Hearing was closed at 2:40 p.m.
STAFF REPORTS
(continued)
COMMENTS
CLOSE OF HEARING
ITEMS FOR BOARD ACTION
Debbie Henderson reported that this ordinance
proposed an overall rate increase of 4%. She noted
a detailed budget presentation was made at the
Public Meeting held on May 1 5.
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Director Claudio listed some of the projects staff
would have to eliminate if there was no rate increase
and determined they all were necessary. However, in
deference to the 25 people who submitted protests to
the rate increase, he encouraged the Board to vote no
on the rate increase so those people will feel they
were represented.
ORDINANCE NO. 508-08:
RATE AMENDMENT ORDINANCE
SPECIAL BOARD MEETING MINUTES - MAY 29, 2008
PAGE - 3
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Director Rise reported the District has a responsibility
to the other 17,000 + ratepayers to keep the infra-
structure sound. He questioned one Board member's
interest in treating storm water at a cost of millions.
He also talked about the trickle down economics that
benefit the community as a result of doing capital
projects.
Director Schafer reported a vote against the rate
increase would be reckless and irresponsible. The
number of protests did not indicate an overwhelming
concern. He expressed his dismay with one Board
member for making his vote publicly known in the
newspaper before all information was considered.
Director Schafer also spoke regarding the compound
affect that would occur if projects were not completed
and how the costs would increase if they were put
off until later. He noted that staff and the Finance
Committee spent many years developing a workable
budget, and recapped many of the significant savings
that resulted from refinancing bonds, obtaining favor-
able bond ratings, and achieving a double-A rating.
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President Mosbacher reported rates affected her since
she is also a District customer. She noted how much
work goes into developing the budget and how much
cutting that takes place prior to its release to the public.
She also stated the Board has a good reputation in the
community and expressed her disappointment to see
one Board member step out ahead of the Board.
Moved Schafer / Second Rise / Claudio Voted No /
Jones Absent / Passed to enact Ordinance No. 508-08
amending Ordinance No. 464, and Superseding
Ordinance No. 499-07 in its entirety.
Moved Rise / Second Schafer / Claudio Voted No /
Jones Absent / Passed to adopt Resolution
No. 2845-08 adopting the budget for the sewer
enterprise fund.
Moved Schafer / Second Rise / Claudio Voted No /
Jones Absent / Passed to adopt Resolution
No. 2846-08 adopting the budget for the water
enterprise fund.
3:05 - 3: 1 0 p.m.
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ORDINANCE NO. 508-08:
RATE AMENDMENT ORDINANCE
(continued)
RATE AMENDMENT ORDINANCE
SEWER ENTERPRISE FUND
BUDGET: FISCAL YEAR 2008/09
WATER ENTERPRISE FUND
BUDGET: FISCAL YEAR 2008/09
MEETING BREAK
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SPECIAL BOARD MEETING MINUTES - MAY 29, 2008
PAGE - 4
ACTION I REPORT ON ITEMS DISCUSSED DURING CLOSED SESSION
(Note: Attorney Herrema participated via
teleconference. )
No reportable Board action.
3:15p.M.
ATTEST:
Pursuant to Government Code
Section 54956.9 (a)/Conference
with Legal Counsel - Existing
Litigation re: Meyers Landfill Site:
United States of America vs. EI
Dorado County and City of South
Lake Tahoe and Third Party
Defendants, Civil Action No.
S-01-1520 LKK GGH, U.S. District
Court for the Eastern District of Ca.
ADJOURNMENT
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